Tag: public sector undertakings & global enterprises

The globally integrated enterprise is a term coined in 2006 by Sam Palmisano, the then CEO of IBM corporation.

MNC has many disadvantages. It invest in most profitable sectors and disregard the national goals and priorities of the host country. Many domestic industries have to wind up due to the threat of MNC'S. 

Foreign exchange transaction is a type of currency transaction that involves two countries. Generally, a foreign exchange transaction involves conversion of currency of one country with that of another. The conversion of currency in a foreign exchange transaction can be performed.

Home Country in international compensation, this is the country upon which an expatriate's compensation is based. It is usually the expatriate's home country or the country in which the employee's headquarters is located.

Multinational Corporations in developing countries

• Environmental costs. Multinational companies can outsource parts of the production process to developing economies with weaker environmental legislation. For example, there is a trade in rubbish, which gets sent to developing economies like India for disposal and recycling.
• Profit repatriated. Although multinationals invest in developing economies, the profit is reptriated to the location of the multinational, so the net capital inflows are less than they seem.
• Skilled labour. When undertaking new projects, the multinational may have to employ skilled labour from other economies and not the developing economy. This means best jobs are not received by local workers and the investment is diffused.
• Raw materials. A large component of multinational investment in developing economies is seeking out raw materials – oil, diamonds, rubber and precious metals. The extraction of raw materials can cause environmental externalities – polluted rivers, loss of natural landscape.
• Sweat-shop labour. Not all economists are convinced sweat-shop labour is a good thing. Critics argue that weak labour conditions allow multinationals to use their monopsony power and pay lower wages to workers than they should get paid

Host country a nation in which representatives or organizations of another state are present because of government invitation and/or international agreement. Dictionary of Military and Associated Terms.

Business enterprises wants to be international because it has many advantages. It avoids trade barriers which are the rules and regulations that regulates foreign trade and investment. Tarrif is the tax imposed by the government on the import and export of goods. MNC get some relaxation in these tarrifs. Secure, timely and cost effective supply of raw materials is the backbone of any enterprise. MNC can get easy access to the raw materials as it can set up operations where the raw materials are easily found which in turn reduces the production cost.

Apple Inc. is an American multinational technology

Nestlé S.A. is a Swiss transnational food and drink company headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the world, measured by revenues and other metrics, since 2014.

(IBM) International Business Machines Corporation is an American multinational information technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911 as the Computing-Tabulating-Recording Company and was renamed "International Business Machines" in 1924.